IFC Helps Azerbaijan Develop Efficient Credit Information
Baku, Azerbaijan, April 30, 2013—IFC, a member of the World Bank Group,
is helping Azerbaijan develop an efficient credit reporting system to ease
access to finance for individual borrowers and small businesses and boost
private sector development.
Starting April 30, IFC and local stakeholders are hosting a two-day conference
in Baku to increase awareness of credit information sharing and facilitate
the exchange of knowledge, ideas, and best practices. An
efficient credit information system helps financial institutions make informed
decisions, helping borrowers who have previously been under-served due
to a lack of credit information.
“The creation of a private credit information bureau will be an important
step in strengthening the country’s financial institutions and mitigating
risks, and the advice we have received from IFC has helped guide us through
this process,” said Rauf Akhundov, the head of Azerbaijan’s Private Credit
Bureau Steering Committee. “This conference and knowledge exchange provides
us with yet another opportunity to take advantage of international experience
in building and operating a credit bureau.”
The conference brings together representatives from the Presidential Administration
of Azerbaijan, the country’s central bank, local financial institutions,
telecommunications and utilities companies, and experienced credit bureau
operators from Germany, Italy, Iceland, Singapore, South Korea, Turkey,
and the United States.
“International experience confirms that commercial credit bureaus are
well equipped to meet the rising demands of today’s global marketplace,”
said Aliya Azimova, IFC Representative in Azerbaijan. “A well-developed
and effective credit information sharing system with new products will
help financial institutions in Azerbaijan increase lending, thereby supporting
private sector development.”
The initiative is part of the IFC Azerbaijan and Central Asia Financial
Markets Infrastructure Project, supported with finds from the Swiss State
Secretariat for Economic Affairs (SECO).
Azerbaijan became a member of IFC in 1995. Since then IFC has invested
almost $393 million and mobilized nearly $73 million from other lenders
in 67 projects in financial services, infrastructure, and manufacturing.
IFC has also implemented advisory projects focused on private sector development.
In addition, the State Oil Fund of the Republic of Azerbaijan (SOFAZ) has
committed $350 million to three funds managed by IFC Asset Management Company
that invest alongside IFC in private sector projects in emerging markets.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.
For more information about SECO, please visit: www.seco-cooperation.admin.ch